Know how their doing this? By taking advantage of the system. They use little known loopholes and incentives to drive their wealth through the roof. It’s always been the goal of Mark Patricks and The League of Power to reveal these advantages to the 99 percent. Today is no different. I want to tell you about one of those loopholes right now.

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The best part is you could take advantage of this loophole too! You can increase your net worth just like the top one percent of Americans are doing. What I’m about to describe to you is completely legal and available to many U.S. citizens who have a mortgage.

Interest rates have been falling for the past couple of years. My friends Jason and Jessica are about to purchase their first home in South Florida, they are getting an incredible interest rate of only 3.75 percent! Banks are offering the absolute cheapest rates at which to buy homes right now. If you have refinanced or bought a home in the last several years you likely have a rate somewhere between four and six percent.

Borrowing money at incredibly low rates have allowed mortgage holders to pull equity out of their homes and invest it in tax deferred accounts, like 401(k)’s and traditional IRA’s. Why is this a great way to increase your wealth? Because you get a tax advantage on both sides of the deal! These savvy investors get to deduct the mortgage interest on their tax returns, receive a tax deduction from their contribution, as well as watching their money grow tax-free for years, even decades!  All of these three components work to decrease the net effective interest rate on already cheap money.

While the markets have been crazy in past years, there are money ways for you to safely earn gains well above these low rates. There will be money to be made in the markets in 2012 and beyond! Remember the average annual return for the stock market sits at 10 percent. When you’re borrowing money at only four or five percent with the tax advantages lowering it further, that leaves a lot of money to be made!

There are some disadvantages to this money-making loophole. Number one you have to have equity in your house to take advantage of this. If you’ve bought a home in the past few years, you likely don’t have much or any equity or negativity equity, leaving you out in the cold.

If the housing market goes down any further, your home will be worth less than what you owe on it. That could make it hard to sell if you come into a financial crisis. While this is a possibility, I don’t see it happening. The housing market has already essentially bottomed out. Experts are arguing back and forth right now on whether or not we hit the bottom in 2011 or we’ll hit it sometime in 2012. So I don’t expect any of our homes to lose value over the next several years, in fact it’s much more likely that we’ll start to see some modest gains here shortly!

Another scenario is that if you lose your job, you’ll not only have lost your income but you’ll also have a higher mortgage debt load. If you don’t find another job or replace that income your risk for foreclosure goes up. The way to ensure you don’t lose your house is to make sure you have enough cash in your emergency fund to pay your mortgage for several months, even up to a year, until you find another job.

In my opinion the risk is low. There are ways around every possible disadvantage this wealth producing loophole creates. You just have to prepare ahead of time.

The biggest upside to this is that the money you take out of your home will be working for you, to make you richer. You don’t want to pull equity out of your house to go on vacation, buy a new car or anything that won’t increase in value.  This is exactly the kind of technique the rich use to increase their wealth; they make their money work for them, instead of working to make money.

Another advantage is that you don’t have to jump on this opportunity today to make money. Interest rates are expected to stay low at least throughout 2012, possibly even beyond that. At any point in the next year you can decide to take advantage of this loophole the top one percent of Americans are using to increase their wealth.

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Some Fascinating Loopholes

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Keeping Money in Your Pocket,

Nancy Patterson

As tensions rise in the Middle East surrounding Iran’s nuclear program, the calls are getting louder to engage the country militarily. Of course, the main proponent for this stance is Israel, which makes sense since they are the frequent targets of Iran’s vitriolic hyperbole.

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But, Israel cannot strike Iran without the permission of the United States. Whether that permission is implicit or explicit really does not make much difference. The United States will be blamed and will be pulled into a potential third simultaneous conflict in the region. That is something this country cannot afford. In case you haven’t noticed, we have run out of treasure a long time ago and now it’s a matter of how many precious lives we are willing to sacrifice should a conflict escalate to the point that we are at war in the Straits of Hormuz, the oil shipping channel that Iran is trying so hard to control.

At the end of the day, a nuclear Iran is not a good thing…unless you’re Iranian of course. And, that is part of the problem. Iran believes that it has the right to arm itself with any and all types of weaponry. It’s hard to argue against that assertion since that is basically the notion shared by all countries in this volatile region. All the major players, Saudi, Iran, and Israel are armed to the gills with weaponry, nuclear (in the case of Israel) and conventional alike.

As it stands today, the Iranian regime is feeling the heat of global sanctions, especially those that have tightened money flows into the country. The currency has devalued by more than 20% in recent weeks and the country, a major oil producer, is running out of gasoline…ironically, it has limited refining capacity. Internally, the population is getting restless and seeking political change. Two years ago the country’s leadership faced a severe challenge from a wide swath of the population. It quelled the protests in the streets using thugs imported from Lebanon. That was a golden opportunity for the US and others to act to bring down the regime. Nothing happened and the protests were put down violently.

Fast-forward to today and there are several scenarios, none good, which might play out in the months ahead. First, we have to remember that we are in an election year and that means hot rhetoric from the incumbent and the challengers. If we sanction an attack on Iran, something that has strong likelihood, we will be adding to the pain that we feel at the pump, overnight. Already gas prices are approaching the $4 per gallon level, a point at which economic growth becomes impacted. A nascent recovery cannot withstand prices much higher than that. The head of Shell Oil predicts that gasoline will reach $5 per gallon by the summer. Much of the increase in the price of gas and oil recently is not demand driven but the result of a war premium in the price of oil combined with reduced refining capacity for gasoline, which is actually suffering lack luster demand.

Attacking Iran will lead to a spike in global oil prices. Some predict a spike to $200 overnight. Of course, overnight spikes, while scary, tend to deflate as quickly as they happen. But, engaging a major oil producer in a war will lead to higher prices at the pump and it will stall economic growth.

The option I support, similar to the one that is supported by Ron Paul, is to allow these new tougher sanctions to work. If Israel wants to bomb Iran, it should do so on its own dime, and while we will be blamed, we cannot engage in another war for one simple reason: we CAN’T afford either the cost in treasure or in lives…or the toll on our economy.

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Paul’s Secret for Making More Money per Square Foot than Apartments, Homes, Medical Office Space, Strip Malls and Hotel Rooms

6:22 AM

Dear Entrepreneur:

I just returned from the largest meeting of real estate “junkies” in the world.

I don’t mean “junkies” in a bad sense.  The real estate industry looks on these guys as a bunch of kooks, lowlifes and “hacks”.

The problem is…these guys are making money. It seems everyone else in real estate is bankrupt, underwater, or leveraged to the hilt.  I’ll show you how these guys are making money in a depression.

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Six people on the Forbes 400 Richest List have ties to this market, so not everyone is a kook.  On top of that, the market is growing despite the economy.

You Don’t Need to Be Rich to GET RICH in this Market

You don’t have to be a billionaire or even a millionaire to make money in this market.  You can also get involved as a passive investor, and leave the heavy lifting to someone else.

No Special Training – But TONS of Common Sense

You don’t need any special training, a college degree, or a real estate license.  The market is “self-storage” real estate.  I wrote a book about the opportunities – but I’ll give you the essence of it right now.

Here’s the best part of this business…

You can start out small and build this business in a way which suits your lifestyle.

My good friend Paul K. in Henderson NV started a small venture about fifteen years ago and now controls four self-storage investments.  If you like the idea of residual income (without the headaches of typical real estate investments) this could be the perfect opportunity for you.

Another friend Phil S. from Santa Monica CA developed a unique twist to this market. It’s called a self-storage real estate investment trust (REIT).  You’ll like this…

Little-Known “Investment Trust” Angel

A self-storage real estate investment trust or REIT is similar to conventional REITs. And it can be an incredible tool for generating substantial wealth, and in many cases it can reduce tax burdens.  If you’re not familiar with the concept, I’ll break it down for you.  A REIT is a tax designation for a corporation investing in real estate. A REIT can reduce or eliminate corporate income taxes.

On the flip side, REITs are required to distribute 90 percent of the income to shareholders. This income may be taxable in the hands of the investors.

The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.  Like other corporations, REITs can be publicly or privately held.  Public REITs may be listed on public stock exchanges like shares of common stock in other firms.

How Self-Storage Became a Hot Rising Trend

The modern self-storage business in the U.S. began in Texas in the late 1960′s.  But self-storage can be traced back to the United Kingdom more than 800 years ago!  People are still buying “stuff” and running out of room in their houses, apartments and businesses so they need somewhere to put it.

Today, you can find thousands of self-storage buildings along major highways throughout the U.S., Canada, South America, the U.K., and Australia.  However, the neat thing is this business is not limited to prime locations along major highways.  You can find self-storage properties in almost every town, village and rural area around the world.

Here’s the deal…

The average self-storage facility consists of about 100 storage units.   In larger metropolitan areas you can find facilities with 500 units or more.  I toured a facility in Orlando, Florida recently with more than 2,500 units!

The dimensions of the storage rental units vary. But the most common sizes are 5′ x 10′, 8′ x 10′ and 10′ x 10′.  Customers can rent a self-storage unit for 30 days or as long as 5 years or more.  The average rent for a 10′ x 10′ storage unit in the U.S. in 2011 was $79 per month, according to Inside Self Storage magazine.

The rent in larger cities can be as high as $300 a month (in Manhattan it’s off the charts).

But get this…another surprising source of revenue in this business is late fees.

Late rental fees -typically run $5 to $25 per month.  Another source of revenue is the auctioning off of storage-unit contents when renters don’t pay within the certain period of time.  One of the hottest shows of the year is Storage Wars on A&E. It details the self-storage auction business…if you haven’t seen it, I highly recommend you do. Believe me….you’ll like it!

Anyway, an auction occurs when the owners have forfeited their stored items by failing to pay their rent. As an owner or manager you have to clear out the contents anyway to make room for a new tenant.  So selling the contents could help you make up for at least some of the money the renters owe.

Portable self-storage is taking off too, although it’s not as big.  The largest player in the portable self-storage business is PODS (Portable On Demand Storage). Home Depot and other large retailers are getting into the game now too.  In the 1970′s and 1980′s, self-storage owners were buying low budget properties often hidden from view by other buildings and structures.  This is not the best formula according to 35-year self-storage veteran Paul King of Las Vegas.

Here’s what Paul told me:

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“In my experience the most profitable self-storage operations are those located on the way to a grocery store, Wal-Mart, gas station, or home improvement store. It doesn’t hurt if your self-storage facility is located on a major road with super-easy access.”

Current trends back up Paul’s opinion.  Today, mega-franchisees are buying prime frontage as well as retail lots, and paying big bucks for them.

Sovran Self Storage Inc. a New York based company has nearly 25 million square feet of self-storage in 381 facilities.  There are hundreds of companies which serve to the self-storage industry, too.  You’ll find mini-storage consultancies, brokerages, and financing companies that specialize in this market. I’ll cover some income opportunities’ in these markets in future issues.

Self-storage development seminars are selling out nationwide.  If you think that’s great, then listen to this…

What’s the Big Deal with Self Storage?

The self-storage market is considered by some real estate entrepreneurs to be a true “cash cow” venture.  This simply means operating expenses are relatively low and the owners often realize more revenue per square foot than other real estate investments.  The self-storage market is practically recession proof.

I know everyone says his or her market is “recession proof”!  I get tired of hearing this.  But think about it.  The economy is hurting.   Real estate foreclosures, bankruptcies, and subprime mortgage meltdowns are at historical highs.  But have you seen any self-storage businesses or REITs (in this market) go bankrupt recently?

Most of the self-storage operations in larger cities with first class management (and an eye for direct marketing) are doing fine.

Why does the self-storage market flourish when so many others are going under?

One reason is when families are forced to move out of their homes due to financial difficulties they need someplace to store their goods – enter self-storage!  There are other reasons too.

What’s more, self-storage rent is a relatively small monthly charge.

Therefore people typically group self-storage bills together with utility bills, phone, Internet, cable, and water.  The delinquency rate in self-storage is typically much lower than home or apartment rentals.

Business owners have found self-storage useful in a downturn too. They can rent smaller office space and supplement the lack of space with self-storage.

The Numbers Don’t Lie! Comparing Other Real Estate Ventures with Self Storage

Here’s an example of an entrepreneur in Atlanta.

T.R. purchased an older, three-story building in a rundown section of Atlanta for $550,000 (owner-financed) and converted it to a mini-warehouse consisting of 110 units. The mini-warehouse is currently 85 percent full.

The monthly rent for a 10′ x 10′ unit is $100.

The math is simple: 93 units x $100 = $9,300 per month in revenue. T.R’s mortgage payment is about $1,100 per month. There are a few additional costs because of his location. These expenses include a security system, drive by security and a full-time, on site manager.

Still, this is an example of how an older building can be converted to a profitable self-storage business.

Here’s another example:

R.G. is an entrepreneur in North Chicago. She has 75 10′ x 10′ units, for a total of 7,500 square feet. (Actually, there’s a bit more – but we’ll simplify it for this example.)

R.G’s potential revenue (with 75 units rented at $225 per month) is $16,875 per month. $16,875 divided by 7,500 gives her $2.25 per square foot.

Meanwhile, a typical 2,500-square-foot, three-bedroom home in the same area rents for about $1,500 per month. $1,500 divided by 2,500 equals only $0.60 per square foot! Can you see why self-storage facilities are so attractive?

Take a look at a medical office building…

There’s a new 100,000-square-foot medical building in Las Vegas which offers office space from 1,485 to 7,200 square feet in size.  I’ll use a 2,500-square-foot space (which is the average) for this example.

The rent for this space goes for about $1.50 per square foot, or $3,750 per month.

This particular building is 40 percent occupied. With that occupancy rate, let’s say five 2,500-square-foot office units are each generating $3,750 per month for total monthly revenue of $18,750.

And $18,750 divided by 100,000 square feet equals almost $0.19 cents per square foot in actual revenue.

If the building was 80 percent occupied and the revenue was $120,000 per month, the actual revenue would still come out to only about $1.20 per square foot.

What about strip mall rentals?

Let’s take a look at a typical strip mall near a nice area in Austin, Texas. A 4,000-square-foot space was recently available for $4,500 per month.  There are 10 units in this particular mall. Three of them were empty.  Four 4,000-square-foot units were currently occupied at $4,500 per month each.  Three 2,500-square-foot units were currently rented at $2,750 per month each.

Four units x $4,500 = $18,000.

Three units x $2,750 = $8,250.

Total revenue: $26,250

The total retail space in this strip mall is approximately 36,000 square feet. With the parking lot, the actual total is about 50,000 square feet.

Here’s the math: $26,250 divided by 50,000 square feet equals only $0.52 cents per square foot!

Not only is the potential profit per square foot of self-storage mind boggling – especially as compared to most residential and commercial properties – but get this: self-storage does not have most of the headaches typically associated with real estate – like plumbing, live tenants, and wear and tear. On top of that, the cost of utilities for each unit is a bare minimum. Can you say overhead light?

But before you get into this business you’ll need to perform some due diligence and homework:

1. Locate and identify every self-storage facility in your area or state.

2. Physically inspect all the locations – and take notes. Walk around the property. Rent a traffic meter and stick it on a tree or utility pole (check local regulations to make sure it’s okay). Observe the condition of the buildings, fences, and traffic to and from the facility.

3. Talk to the managers of the facilities if you want to, but only as if you are a customer looking to rent a unit.

4. Spend 30 minutes per day educating yourself on the industry. Most people don’t do this, but that’s how you become an expert.

5. Subscribe to the industry’s main trade publications (listed below).

6. Do the math!

Self-storage is a viable business opportunity! The profit margins can be as high as 70 percent.  And one of the most attractive aspects of this business is that there are no people in the units! If you’ve ever been landlord, you know what I’m talking about.

There are ways to really leverage your profit in this industry; too, including my friend’s concept of self-storage real estate investment trusts (REITs).

There are also investment partnerships that acquire only the most profitable facilities.

Real Estate Collapse Helps This Business Grow

As I said at the beginning of this issue, my friend was instrumental in developing the self-storage REIT market.  He would always tell me, “People will always store stuff. And they often have to store even more of it when times are bad or their real estate investments go south.”  Take this advice to heart.

People will always store stuff. And when real estate investments go sour, people have a lot more stuff to store.

In Detroit, for example…real estate sales have been plunging for two years in this city, with no end in sight. There are no buyers. In many ways Detroit is like a war zone today.  But the self-storage business in Detroit is actually pretty healthy.  I was unable to find any self-storage businesses for sale there. This tells me Detroit’s self-storage entrepreneurs may be doing well.

Determine which approach works best for your situation: starting from scratch, buying an established mom-and-pop or prime location facility, or investing in rehabbing a rundown building.

This market is huge and growing! This opportunity is yours for the taking.

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Your humble host…..

Marc Charles

(Ed Note:  Marc Charles is referred to as “The King of Business Opportunities” ….and for good reason. He should be known as “The King of Legitimate Business Opportunities”…because he’s launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc has agreed supply League of Power members with crucial updates regarding legitimate business and money making opportunities.)

Action Strategy

Self-Storage Fast Start Tips

1)    One way to get started in self-storage is by developing your own facility from the ground up.  This approach requires capital, location and a myriad of other tasks. But like Paul says, the payoff is substantial.

2)    Acquire an established self-storage business. Operators often sell at a discount because it’s been unsuccessful for them. But with an in-depth understanding of the business and direct marketing you can turn these businesses around.

Three simple questions you can ask self-storage business sellers:

*    How many units does the business have?

*    What is the current occupancy rate?

*    What is the actual drive by auto traffic number?

If a self-storage business has 100 (10′ x10′) units… and the current occupancy is 40 to 50 percent… it could be considered a “prime target” by self-storage “insiders.”

But it must have at least moderate levels of drive-by traffic (2,000-5,000 cars per day).

Self-storage owners can’t lie about how many units they have, but they might try to “cook the books” regarding occupancy.  But if you do your homework, you’ll know if you can make a particular location profitable.

3)    You could acquire a self-storage facility in a prime location – one where the traffic (and cash flow) is much stronger. These locations are pricey – in the $1 million to $2 million range.

But when you start digging you’ll see why investors gladly shell out the big bucks for these cash cows!

Here are some self-storage businesses that were being offered for sale in prime areas on major highway intersections recently:

Western New York, Texas, and Mississippi (12 self-storage centers) – $35 million

Southwest Florida (39,000 sq ft/16 acres) – $1.5 million

Loudon, New Hampshire (27,200 sq ft) – $1.2 million

San Clemente, California (22,760 sq ft) – $3 million

Augusta, Georgia (29,900 sq ft) – $545,000

Bow, New Hampshire (16,900 sq ft) – $550,000

Las Vegas, Nevada (74,800 sq ft) – $3.7 million

Coos Bay, Oregon (13,500 sq ft) $650,000

Lubbock, Texas (54,445 sq ft) – $1.2 million

South Chicago Heights, Illinois (49,600 sq ft) – $1 million

Hickory, North Carolina (21,240 sq ft) – $285,000

Paris, Tennessee (7,800 sq ft) – $229,000

Prescott Valley, Arizona (40,300 sq ft) – $2.1 million

Gainesville, Georgia (14+ acres) – $1 million

Ankeny, Iowa (10 acres) – $850,000

Kissimmee, Florida (35,200 sq ft) – $3 million

If starting from scratch or buying an existing mini-warehouse business doesn’t work for you, there is a fourth option.  In years past, the success of self-storage was dependent on prime real-estate exposure.  But today, there are rundown, older buildings in many downtown areas which can be converted to a self-storage operation.

Granted, some of these areas aren’t the best place in the world to do business…including self-storage.  But hundreds of areas across the U.S. and Canada have seen a resurgence of revitalization. The one advantage of centrally located self-storage in major metro areas with easy access is people – lots and lots of people!

It’s fairly easy to do. And this redevelopment is often welcomed by local civic leaders because they’ve lost a good chunk of their population as a result of the exodus to the suburbs (and exurbs).   In some cases, you can acquire old buildings at deep discounts.

By the way, you don’t have to limit yourself to older buildings right in the center of town.  There’s another growing trend too. It’s converting empty barns and steel buildings in rural areas and retrofitting them for self-storage facilities.

Check out this self-storage facility in Koloa, Hawaii

Koloa Self Storage

Valuable Resources

MiniCo Inc.

Modern Trade Communications (Self Storage Building News)

SelfStorage.com (find self-storage businesses)

Self-Storage Association

Mini Storage Messenger

Extra Space Storage (franchise and REIT)

Public Storage (franchise and Public REIT)

U Store It Trust (franchise and REIT)

Global Portable Buildings, Inc. (a leading manufacturer of mobile storage units)

Click HERE to comment on this article

62. That’s the number of days you and I have left to file our taxes. The clock is tick, tick, ticking away towards the filing deadline.

I have always felt the need to be extra careful with my taxes. I am a stickler for saving receipts and statements because I’m always worried about being audited. Individuals, who are self-employed, like me, are audited five times more than the average employee, according to IRS data.

That statistic scares me. I’ve never been audited and I sure as heck don’t want to it to happen now.

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I’ve heard all kinds of crazy tactics people try in order to avoid an audit. A relative once assured me he had never been audited because he always waited till the last possible day to file his return. He was sure that the IRS was so overwhelmed by the amount of returns at that point, that his account was consistently overlooked. It was also suggested to me once to underpay my taxes by $5-10. The theory was that my account would go to collections and I may incur a small fine, but that it would insure that I wasn’t audited.

I’m not willing to try to crazy schemes and I don’t want you to either. There is no need. There are some sure-fire ways to help avoid being audited. I’ve compiled a list of the best tactics out there that ensure a smooth tax filing process.

Your first line of defense against the IRS is something you can buy relatively inexpensively at nearly any retailer. Using a calculator can save you from the most common reason people get audited. Simple math errors are sure to get you in hot water with the IRS. Double-check your numbers before you send in your return. If the IRS does contact you about an audit check your numbers against theirs. They may not be able to read your handwriting or they may have inverted a number while inputting your tax return into the computer system. Take comfort in the fact that, for the most part, simple math errors like addition and subtraction mistakes rarely lead to a full audit.

Another easy way to avoid an audit is to watch what you say on social media websites. While you may not think you’re being watched, let me assure you, you are. The IRS has been very successful in catching people who brag about getting one over on them on websites like Facebook and Twitter. The IRS hands out cash rewards to whistle blowers too. If you brag to your friends about paying thousands less in taxes than you should, they can turn you in and earn 15-30% of whatever the IRS collects. That’s a pretty big incentive, especially when they can do it anonymously. Even seemingly innocent pictures posted online can hint to the IRS that you are living a much grander lifestyle than your tax returns reflect. It’s best to keep your creative accounting strategies to yourself.

Unusual deductions are a surefire way to get an audit letter from the IRS. When the IRS sees larger than usual deductions, especially in the cases of home offices, business travel, entertainment and charitable donations, it raises a red flag in the eyes of an IRS agent. Those who are self-employed run a higher risk of being audited because it’s easier for them to convert personal expenses into business expenses. Your best defense is to provide a letter of explanation when claiming a larger than normal deduction or loss. If you’re claiming much higher charitable donations than in past years, explain to the IRS that you’ve moved residences and are getting rid of old stuff. If all of a sudden you claim part of your mortgage as a deduction, tell the IRS you’ve started a home-based business in the past year. Whatever you tell the IRS, is better than no explanation at all.

I don’t want to scare you off from taking all the deductions you can rightly claim. But at the same time, know that too many deductions can also trigger an audit. The IRS has a computer program which compares your deductions with others in the same tax bracket. The program is called DIF, which stands for Discriminate Index Function. Your DIF score is based upon a secret IRS formula that determines the average number of deductions for a person in your tax bracket. If your deductions are out of whack with what others in your tax bracket claim, your account is flagged. For example, if the IRS determines the average person in your income tax bracket claims $500 in charitable donations, and you claim $8,000, your DIF score will go up. The more your deductions differ from others in your tax bracket, the higher your score will be and the more likely you are to get audited.

I know we all wish to be millionaires one day, but here’s a reason to be glad you’re not one today. Tax filers that earn more than $1 million a year are twelve times more likely to be audited than those that don’t. In 2011, 12.5% of million dollar plus earners were audited. Audits on the rich have more than doubled since 2009. In 2010 only 8% were audited and in 2009, only 6% of millionaires were audited. For those of us earning less than $200,000 per year, rest easy, the audit rate is only 1%.

Here’s to hoping you and I avoid the dreaded audits this year and beyond!

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Keeping Money in Your Pocket,

Nancy Patterson

Ah, the Greeks. The cradle of modern civilization has finally hit rock bottom. In a country where tax evasion is as popular as the Olympics, the time has come to pay the piper. In a perfect world, the Euro-Zone would tell the Greeks to exit the Union and go back to using the Drachma. Unfortunately this would create shockwaves through the global markets in the short term. So, Greece will likely continue to plod along as part of this dysfunctional dis-union, catching a free ride while the economy and populous suffers.

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Letting Greece collapse would be the right thing to do. After-all, they entered the Union under false pretenses, pretending they were a fiscally sound country. Unfortunately, a massive Greek default would send a message that the other troubled Euro-Zone countries could also default.

If this has undertones that sound familiar, maybe it’s the parallels to the US economy circa 2008. Had we allowed the bad banks to collapse, we would have fulfilled the true meaning of a free market economy where the weak fail and the strong survive. Of course, we would have likely entered into a major Depression in the process and that was unpalatable then and still unpalatable today. Better that we kick the can down the road and continue the practice of bailing out the failing companies and industries. That’s exactly what is happening Europe today. It’s a massive bailout that has our fingerprints all over them. And, it’s only just beginning over there. That is why the Greeks hold so much leverage.

Sure, their economy is in tatters, unemployment is sky high, the Unions are getting smashed and government workers will only get a month of vacation this year and the retirement age will increase by a couple of years. They’re getting off easy.

Fifteen years ago, if Greece was in the same situation (actually it was, they just lied about it) and not part of the Union, they would have run begging to the IMF for aid. They would have defaulted on their debt, just as many third and second world countries did in the nineties. Fast forward to today, and they would be in much better shape, having tackled the issues at a cost of a few billion dollars and not the hundreds of billions they owe today. More importantly, they would not have the power to destroy an entire economic union.

Greece is a great example of what can happen when you let a relatively small problem go unchecked for a decade. It becomes a huge problem. Now, let’s magnify the issue and see what can happen down the road.

Greece has a GDP of about US$304 billion. The country’s debt is about 120% of GDP. Now, just for comparison, let’s look at the United States. Our GDP is almost $15 trillion (yes, with a  “t”) and our debt to GDP just passed 100%. We are not far behind Greece in this measure. The US will not default on its debt. As the global reserve currency, we can print ourselves into oblivion if we have to, decimating the currency and the economic livelihood of millions, if not billions of people. Instead of tackling this obvious problem, and shrinking government, eliminating bailouts and reducing handouts, we have decided that we will follow the same course as Greece and kick the can down the road. Ten years from now, if this continues unabated, the consequences that we are seeing from Greece will be nothing more than a footnote in History compared to the real Greek tragedy unfolding now, on our own shores, in front of our very eyes.

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Dear firstname,

Do you own a camera? (A simple digital “point-and-shoot” counts.)

Do you enjoy taking photos of your family, friends, kids… even pets?

Maybe you like shooting scenery, trees, plants, flowers mountains, farms, buildings, or flowers in your backyard, home town, or nearby natural areas?

How about vacations – do you take snapshots of famous monuments, interesting street scenes, that beautiful beach right outside your window, or the local people you meet?

If you have a camera and answered yes to one or more of the preceding questions… I have good news.

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You can actually turn your hobby into a very fun-to-do profit center. I’m talking a passive income stream of thousands of dollars a month. And all you have to do is… take pictures.

*    You don’t need a fancy, expensive camera, lighting, big lenses, or other equipment. That plain point-and-shoot camera I mentioned earlier is perfect.

*    Forget about setting up a studio or hiring professional models.

*    No training or professional experience is necessary. Although there are some simple techniques I’ll explain in a moment that will make your photos pay off even more.

This little hobby-business is very basic. You simply take pictures and then post them on online stock photo agency websites like iStockPhoto.com. When a customer of that agency downloads your photo – you get paid. And the more photos you have on the site – the more you get paid.

It’s that easy. And because demand for stock photos from magazine publishers, website owners, advertisers, and more is so great, this opportunity is wide open to newcomers. (More on that in a moment.)

Even if all you do is take pictures at home or in your backyard you can still make money. But I’ll show you in just a moment how to take the type of pictures that have stock photo customers downloading left and right – generating thousands in income for you each month… for years to come.

First let me introduce you to an Average Joe who discovered this opportunity a couple of years ago. Today, J.R. makes $2,000 per month solely from “old” photos on stock agency sites. These are photos he’s had online for months or even years. Any new photos he adds just increase his monthly take.

J.R. takes all sorts of photos: his dog, his kids playing in the backyard, spring blossoms in the botanical gardens down the street, simple portraits of friends and family, farmers markets, even hotel rooms. In fact, he’s made hundreds of dollars from a picture he took of the desk and chair in a hotel room he stayed in once.

There’s really no limit to the subjects you can shoot with your camera. To get a good idea of the variety of in-demand stock photos, check out iStockPhoto.com and browse the different categories. You’ll see business, arts and entertainment, babies and children, animals and pets, architecture and buildings, food and drink, nature, sports and fitness… and that’s just the tip of the iceberg.

Most of the time you’ll take a stock photo here and there. But sometimes there’s an opportunity to really hit a home run and take many photos of the same subject.

For example, recently J.R. shot a friend’s wedding in Rome. He’s not a wedding photographer by any means. Just helping a buddy out. He took close to 100 photos during the wedding day. Some of the happy couple (that look like they could be at any wedding), the ceremony, the reception, the historic sites of the city – close ups, landscapes… you get the idea, a variety.

Soon after he got back home, he uploaded the photos to the stock agency website. And already he’s made close to $6,000. And that’s for a days work.

That more than covered the cost of his trip, with thousands of dollars left over.

J.R. is not alone. Another photographer I know really hit the jackpot. One photo he took of a pumpkin patch near his home has brought in $20,000. Admittedly that is an exceptional case. But it shows the possibilities with this opportunity.

How It Works

So how does J.R. get paid? He gets a cut, between 50 cents and few bucks, every time someone buys one of his photos from a stock site. He gets half the sale price (usually a dollar but as much as $15), the agency gets half.

Doesn’t sound like much. But it adds up as a photo is downloaded again and again. Popular photos can sell hundreds or thousands of times. Plus you’ll have hundreds of photos (thousands after you’ve been at it awhile) on the site, each available for sale.

Upload a bestseller and you could generate hundreds of dollars very quickly – and all you had to do was “click” a button.

“Work” once by snapping a photo and make money years to come… how’s that for passive income?

What Exactly Are Stock Photos?

So where are stock photos used and why are they in such high demand?

You’ve seen tens of thousands of stock photos in your lifetime, probably hundreds today alone. Like I said before, websites, magazine publishers, book publishers, ad agencies… they all prefer using stock photos to illustrate their articles, web pages, and ads because it’s much cheaper than hiring a professional photographer for a custom photo shoot.

Over 16,000 photos are published every day in the U.S., with 40,000 published worldwide – and that’s print media alone. It’s hard to gauge how many photos are used online each day – but it’s safe to say that it trumps the print figure by a factor of 10 at least.

As a stock photographer you’ll be making money from selling your photos and you’ll get the added thrill of seeing your work published in websites, magazines, brochures, and books, as well as on billboards and bus stop ads.

One funny little place you might find your stock photos are inside picture frames you buy at department stores.

Tips for Submitting Profitable Photos

All sorts of subjects make for saleable stock photos. But there are some themes that are generally more popular than others. Here are some subjects to keep in mind as you start working on your photo business:

*    Simple portraits of people are always popular.

*    Festivals and farmers markets offer vibrant color.

*    Textures provide great backgrounds for graphic designers work on websites and book covers. For example, brick roads, peeling paint on a wall, or interesting tile patterns.

Another trick is to check out the “bestsellers” list on a stock photo site. And also do a keyword search for subjects that interest you. Look at how the models are posed and how the shots are composed. A great way to get started is to “model” your own photos on current hot sellers.

Take Stock Photos this Weekend and Start Your New Income Stream

Amateur photographers are definitely welcome on stock photo agency sites. But you’ll increase your chances of submitting profitable photos if you follow a few simple strategies.

*    First, get your camera ready. You’ll want to make sure it takes the highest quality photo possible. Check out your owner’s manual or check online for how to do this.

*    Pick a few subjects that you’ll take pictures of (see the “hot” subjects I just mentioned). Then make time for your photo session.

*    Make sure the photo doesn’t contain any company logos or brand names.

*    Keep things simple. You don’t need elaborate scenes, props, or poses. And make the subject the central focus on the photo – don’t “clutter” the background.

*    Take several photos of the same subject from different angles, with and without flash, with different levels of zoom (from close ups to distance shots). You’ll review them all when you get home to pick the best.

*    Pay attention to lighting – glaring flash or “dark” photos won’t work. This might take some practice.

*    Then get home and upload your photos to your computer. Pick the best, keeping in mind how the photos you’ve checked out on the stock sites looked.

*    Then sign up for one or more stock photo sites like iStockPhoto.com, and submit your photos for review. Not all your photos will be accepted at first. But as you get feedback and practice soon you’ll have dozens and then hundreds and thousands of stock photos for sale.

Put up just 10 photos per week and you can expect to make $500 in a month. That’s $6,000 a year. The more photos you add, the more you make.

You could cover a car payment, pay the bills, or take a vacation. All for just a few hour’s “work.”

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Happy Shooting,

John Hollister

P.S. You’re on your way to a very nice passive income stream… from taking simple photos. Of course, to sell those photos you need to join a stock photo agency. Don’t worry – it’s easy. You don’t have to be a pro photographer or have any experience.

Here are some of the most reputable stock photo agencies:

Resources

www.iStockPhoto.com

www.ShutterStock.com

www.Fotosearch.com

www.Veer.com

www.Dreamstime.com

www.Fotolia.com

www.123RF.com

More Stock Photo Tips

I gave you some basic tips to take saleable stock photos. Here’s some more advice from professional photographers on how to compose great shots.

*    An interview with John Lund, an award-winning stock photographer.

*    National Geographic magazine is well-known for its photos. Here’s a great tutorial they put together on taking portraits and other shots of people.

*    Film and camera maker Kodak also has a great tutorial on taking photos of people, places, nature, and more. Check it out here.

There’s no escaping the governments outstretched hand. The IRS is hell bent on getting their cut of every dollar you bring in. Or are they? In fact there ARE some situations where certain types of income are partially taxed or not taxed at all.

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Most of the time when you receive a gift it is considered taxable income. If you get a bonus at the end of the year from your employer, that cash or gift is considered income and therefore taxable. There is one type of gift that Uncle Sam can’t take his cut from. The IRS allows a person to give an unlimited number of $13,000 gifts of cash each year; they call it the annual exclusion.  For example if you give someone $25,000, the first $13,000 of it is tax free, but you (the donor) must pay gift tax on the remaining $12,000.

Couples can give away even more. They can double their annual exclusion to $26,000 ($13,000 x 2) per donor per year. For example your parents can give you $26,000 and your wife $26,000 tax free once each year, for a total of $52,000. That’s more than enough for a down payment on a $250,000 house!

While that is a pleasant scenario in which money you receive isn’t taxed, there are some other less fortunate ways to receive tax free money.  That doesn’t involve having a rich uncle.

If you are awarded money for physical injuries or sickness you received, the government cannot take any of that money. Same goes for workman’s compensation. If you are injured on the job and can’t work, the government can’t tax your disability benefits. Any damages you receive for emotional distress are also considered tax free income.  In most instances any disability benefits you receive, as long you paid the premiums on the policy with after tax dollars, aren’t able to be taxed by Uncle Sam.

Another unpleasant way to save money on your taxes is to offset any income you’ve earned with capital losses. If you sell any investment at a loss, you can use your loss to reduce your taxable income by up to $3,000 a year. Capital losses can even be carried over from year to year until the entire loss has been offset. For example, if you sold investments at a loss of $9,000 in 2011, you could subtract $3,000 from your taxable income on your 2011 tax return, $3,000 from your income on your 2012 tax return and the remaining $3,000 from your 2013 tax return.

Health Savings Accounts (HSA) provide a triple tax advantage. HSA’s are tax advantaged medical savings accounts that allow you to pay for health care expenses now and anytime down the road. The funds you contribute yearly to an HSA are not subject to federal income tax and any interest you earn on the money in your account is tax-deferred. Additionally, funds in the account can be withdrawn federally tax free at any time to pay for “qualified medical expenses”.

Adopting a child is not only a wonderful thing to do, but also a tax exempt situation. Any reimbursements you receive for qualified adoption expenses won’t be taxed. Qualified expenses include court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging while away from home), and other expenses directly related to the legal adoption of an eligible child.

Foster parents can benefit too. Any payments they receive to help care for a foster child isn’t taxable by the government.

Staying on the topic of children…any child support payments you receive are also considered tax free income. When calculating your gross income do not include child support payments received.

Students can also earn tax free dollars. Any scholarship or grant money they receive to get their degree and used to pay tuition, fees, buy books or other required equipment is considered tax free income. Careful though, grant money used for room and board is taxable.

These examples are not all-inclusive. So if you have an unusual income situation, check out the IRS rules with your tax adviser. You may or may not have to pay taxes on the money.

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Keeping Money in Your Pocket,

Nancy Patterson

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Was it the barrage of negative advertisements run by Romney and the Super PAC associated with his campaign? A full 92% of the advertisements run prior to the voting day were considered negative ads. I’m sure it had an effect. But, it was NOT the reason that Newt failed.

Newt failed because he is the master of hare brained ideas, none more so than the one he proposed on Florida’s Space Coast as he pandered to voters in the economically devastated area. The Space Coast is in trouble. Since the announcement of the suspension of the Space Shuttle program, thousands of jobs have been lost and many businesses have shut down or moved. It’s the result of poor planning on the part of NASA and the increased attention being paid to Space by other countries and the private sector.

Newt pronounced that by the end of his second term, he would like to see work towards a manned colony on the moon. This comes after ideas like mirrors in Space to light up the Earth, and Lasers to defeat the bad guys in North Korea etc.. Newt is full of ideas, you have to give him that. But, his ideas tend to border on the wacky side of town. Even if they were plausible, they’re not feasible. And, that is the problem with Newt and also with Romney. While Romney comes across as more stable and even keeled, he is still a spender, just like Newt. Both are proposing huge spending measures and not huge deficit cutting measures. It’s just that Romney isn’t accompanied by his own personal circus that is bound and determined to bring him down at critical junctures in the race.

The answer of course is to send Newt to the moon and elect Ron Paul. But, that’s not going to happen either. I’ve exhausted the reasons why Ron Paul will not be the nominee in previous issues. And, while I know that’s an unpopular position amongst this readership, it’s reality. He is dead last in delegate counts and his decision to avoid Florida entirely does not make him a political standout for November. Now, if we could morph Ron Paul, Mitt Romney and add a dose of crazy man together, we might have something going. It’s only Dr. Paul who would actually have the guts to tackle our bigger issues and truly cut spending. The problem is that he needs to have an anti-Paul working with him.

The Republican Nominee needs 1144 delegates to win nomination. Right now, Romney has 71. It’s very, very early. It’s clear that the Republican establishment is behind Mitt, but it’s far from clear that the voters look at him as their choice and not just their only option in November. After the Florida election a poll was cast and the results showed that almost 40% of voters polled wished there was another candidate running…one yet to be named. In a game of confidence, it’s the one thing that is severely lacking in the Republican Party today.

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Question: I’m looking at six different businesses to purchase.  Three of the businesses are online and three of them are offline. Time is an issue for me so I prefer buying an active (profitable) business. Do you have a formula when considering a business acquisition?
D.R. Miami Florida

6:07 AM

Dear Entrepreneur:

Thanks for your note and question.

Yes…I have a formula. I think I’ll write about this more in the future because I’m asked it so often.  Here’s my take……

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My preference has always been to start a business from the ground up, or working it “on the side” until it becomes profitable.  But…when I’ve purchased a business, or when I’ve helped an investor or client buy one, I always recommend buying them when “there’s blood in the streets”.

This is what I mean….

You’ll always get a better deal when a seller is desperate, or theoretically “bleeding” from things like a bankruptcy, divorce, embezzlement issues or plummeting sales and profit.

But some start-up entrepreneurs prefer the perceived safety and reduced risk of an active, profitable business when looking to buy one.  That’s okay, if the right conditions are in place.

My objective is always the same: make money – don’t lose it.

Business schools often teach the following business acquisition formula:

Three Times Net Profit

The business school formula works like this….

Let’s say you bought a restaurant with an annual net profit of $500,000, you should be willing to pay $1.5 million or three times net profit.

I’m not a big fan of business school formulas, and especially when it comes to buying a business.  I would never pay $1.5 million dollars for a restaurant with an annual net profit of $500,000. There are too many variables for an investment this large. Many things can go wrong (and usually do).

For example, is the $500k net profit certified in writing by an independent CPA firm? How many years has the restaurant generated a net profit of $500k…one?  The biggest question on my mind would be whether or not the restaurant will produce the same numbers going forward — in the current environment!

The CURRENT environment is the foundation of my formula.

For example, there’s a hot dog stand on the coast of Maine with annual sales of about $300,000.   I’ve written about it often.  The owner’s net profit is about $70,000 per year.

If the owner listed his restaurant for sale using the “three times net profit” formula, it would be offered for $210,000.  This purchase would make more sense to me because you would only have to shell out $200k (and change) to make $70k annually.  What’s more, the probability of an established hot dog stand surviving a depression is much higher than a fancy “boutique” restaurant with an asking price of $1.5 million.

On top of that, this particular hot dog stand is always packed with customers and it only takes two or three people to run it!  The fancy “boutique” restaurant probably takes 20-25 people to run properly.

But that’s not all…

I’m confident the Maine hot dog stand has scooped up plenty of business from 6 or 7 restaurants which have bitten the dust in the current economic downturn too.  I’m not big fan when it comes to buying someone else’s business, but there are exceptions.

My preference, as I said, is to start (or acquire) a small or failing businesses with no overhead or debt and build it up.  I’ve done this dozens of times myself…and I’ve helped more than a hundred entrepreneurs, clients and investors do the same thing.

You can use the “three times net profit” formula as a guide or for reference but nothing more. It’s like judging the current “real” market value for something on eBay.

But you have to take the CURRENT environment into account.

Business Buying Formula #2

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Debt, overhead and inventory are business killers!  Ask ANY restaurant owner, retail store owner or farmer (for starters) if this is true.  When you launch a business and it’s already saddled with debt, not to mention overhead like inventory, equipment maintenance, vehicles, supplies, buildings, lawsuits, and taxes, etc…it sucks the life out of you and the business.  Believe me… I know what I’m talking about.

Granted, some entrepreneurs can handle the debt and overhead better than others.  One of my client’s owns a successful restaurant equipment and refrigeration company. He doesn’t have a care in the world.

But his business holds more than a million dollars in debt, his vehicles are falling apart (employees don’t care), his building needs repair, and the market has changed (a depression), which means fewer sales and pickier customers.  And so…my client may be handling debt and overhead problems better than most. But I think in the long run, it will affect him in a big way.

This client paid for my advice, but ignored it. I told him to sell everything before sales peak. The best time to sell a business is just before sales peak. The best time to buy a business is when there is “blood in the streets”.

Business Buying Formula #3

Can the business run on auto-pilot or without the owner physically present?  Are there people you can trust to run the business as good as or better than you?

This is one of my greatest weaknesses. In most of my businesses I rarely trusted anyone as much as myself.  That’s a problem.  Nothing of any magnitude has ever been built on one person.

Whenever I look at business acquisition (for myself or clients) auto-pilot is always a concern.  I like the idea of businesses running smoothly without the owner or investors physically present.

I hope that helps!

Your humble host,

Marc Charles

(Ed Note:  Marc Charles is referred to as “The King of Business Opportunities” ….and for good reason. He should be known as “The King of Legitimate Business Opportunities”…because he’s launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc has agreed supply League of Power members with crucial updates regarding legitimate business and money making opportunities.)

Action Strategy

You can use the conventional “business school formula” of three times net as a general rule of thumb to evaluate listing prices.  Then ask yourself if the business you are considering is in a rising trend and whether could produce the same numbers going forward — in the current conditions (recession / depression / raging bull market).

One question I ask myself is could I start this businesses part time, or on the side, and with less capital requirements?  What’s more…Most businesses offered for sale are overvalued or overpriced (let’s say 90%) or sometimes both!

In most cases you won’t be unable to produce the same numbers in the current environment.  This is the formula I use when considering a business purchase for myself or client.  Armed with this insight you’ll be in a better position to buy a business and start the negotiations!

And remember…  When you are negotiating always be willing to walk away – literally and figuratively.  This is a secret weapon billionaire’s use.  They have the time, money and resources to walk away and this usually means much better deals.

Valuable Resources:

You can find a ton of businesses for sale on these sites (using my formula for the best deal):

BizBuySell

GlobalBX

Sunbelt’s BusinessForSale.com.

BusinessBroker.net

AppBusinessBrokers.com (I really like what these guys are doing)

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About this time of year all of us are clamoring for a vacation. The snow, the wet and cold seem to finally get to be too much to handle by the time February rolls around. Many of us would gladly trade our next paycheck for a week’s worth of sunshine, beaches and sandals if we could.

The problem is as always cost. Christmas just happened and many of us simply can’t afford a trip right now. Even if you’re one of the lucky ones who don’t have left over holiday shopping bills you probably don’t have enough saved for a week’s vacation.

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What if I told you I found a way to go on an affordable vacation right now? The most expensive part of any vacation is the lodging. Hotels and other rentals can easily run you $100-$200 a night. That quickly adds up to a thousand or more dollars just for one part of your vacation. You also need cash for the travel to and from your desired destination, food and entertainment.

If you could cut out the most expensive part of vacationing that would make it a really affordable option, right? I thought so. That’s why I went trolling through the listings on home swapping websites. Home exchange programs have popped up in the last decade across the globe. Members find other homeowners who want to exchange their homes for days, a weekend or longer… at a time that is convenient for both parties to cut down on the cost of lodging, food and rental cars.

Fear is what stops most people from trying out this great low cost vacation option. Indeed Mr. Patterson thought my penny pinching ways had gone a bit too far when I told him I was looking to swap houses for a weekend. The thought of someone who he doesn’t know sleeping in our bed, using our car, potentially rifling around his underwear drawer scared him off of the idea.

In reality home exchange programs get very few complaints from its members.  Most relate to cleanliness rather than any major problems. If you can get over your initial fears you’ll find it’s a great low cost alternative to hotels or rentals.

In order to get the best possible housing you’ve got to list yours first! You want to show your house/apartment/condo in its best light so you can swap with other nice homes. Take plenty of pictures of your place. Show off its best features. Got a jetted tub in the master bathroom? Showcase that. Pool in the backyard? Include photos of that as well. Got a basement filled with games kids would love to play with like a foosball or pool table? Snap pictures of those as well. The first photo you list is the most important because it will be what entices browsers to click on your listing instead of continuing to search.  Some people have great curb appeal and choose a picture of the front of their house to entice browsers. Others have better backyards and make pictures of their land or pool their first picture. Pick a photo that shows off one of your homes best features and list it first.

In order to attract swappers you should also provide a detailed description of your neighborhood, city and local attractions. Most of us don’t live in the best, nicest neighborhoods in the largest cities across the U.S.  People don’t necessarily know your area like you do so describe to them what the appeal is of where you live. Be sure to list how far you are from major attractions like restaurants and downtown areas.

Keep in mind most swappers are families with children. Pick pictures and write descriptions that would entice a whole family to want to come visit. If you live near a theme park, talk about that. If you are near a beach or have a community pool, list those features as well.

Because most swappers are families with kids it’s important to look for a swap way in advance of when you want to travel. While I was scrolling through listings I found the best ones were already booked. The best places go fast so start your search 10-12 months before you want to go. That’s not to say you might not find a last minute swap, but it’s a lot less likely.

There are four websites to check out if you are interested in home exchange programs. Each has its plusses and minuses.

Homeexchange.com is the most popular. It has over 40,000 listings in more than 148 countries. It’s particularly great if you want to travel domestically. They offer sample swap agreement for easy arrangements. The cost is $9.95 a month. If you don’t get a swap in the first year, your second year dues are dismissed.

I found Homeforexchange.com to be very user friendly. Searching for specific destinations is easy as well as definite travel dates. I liked their link for swappers who want to exchange in the next month.  They boast a 95% success rate and also offer a year of free membership if you don’t arrange a successful swap in the first year. Membership is a flat fee of $59 a year.

If you’ve ever wanted to visit the UK check out luxehomeswap.com.  Many listings are based in England, but offers swap listings across the globe. Their current promotion allows you to try it out for only $1, but regular membership will run you $159 a year.

Roofswap.com has been in the home exchange business for the last 46 years. They’ve added the resources of several other sites to make browsing as easy as possible. 10 percent of their profits are donated to Habitat For Humanity. Membership will run you $74.99 a year.

Once you’ve found a home swapping match discuss what is ok and not okay to do in your home.  Let your match know if it’s ok to use your

*    Home phone

*    Personal computer

*    Car

*    Washing machine

*    Food

*    Liquor

These are all things that need to be discussed ahead of time to ensure your swap goes off without a hitch. Most swappers want to talk and exchange emails back and forth several times before absolutely committing to a swap. It would also be helpful to create a user manual for your house. Let the swappers know that your back door sticks or that it takes a few minutes for the hot water to come on or to turn the pool pump off every night. All of these things will ensure a successful swap.

If anyone has successfully house swapped before, tell me about it in the comments section. I look forward to hearing from you!

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